Hedge funds bet on oil spike as Israel attack fears grow

Cairo – Hedge funds are quietly laying new bets on a potential spike in oil prices tied to the possibility of an Israeli attack on Iran, skewing the options market to a bullish bias for the first time in six months.

Signs that Israel is losing patience with efforts to curtail Iran’s nuclear program, as well as the intensifying conflict in Syria, are giving funds new reason to bet on crude despite a lack of evidence that fundamentals are improving. Activity is muted so far by the summer lull, but could pick up in September.